Daniels Corporation is considering the purchase of new equipment costing $3000

Daniels Corporation is considering the purchase of new equipment costing $30000. The projected annual

after-tax net income from the equipment is $1200 after deducting $10000 for depreciation. The revenue

is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value.

Daniels requires a 12% return on its investments. The present value of an annuity of 1 for different

periods follows:

What is the net

present value of

the machine?

A. $24018.

B. $(3100).

C. $30000.

D. $26900.

E. $(29520)